Senate passes Democratic tax plan, rejects GOP version

The U.S. Senate on Wednesday passed a Democratic plan to extend the Bush-era tax cuts for middle income Americans while rejecting a Republican alternative to continue all of the cuts -- twin votes that help to crystallize the position of the two parties on a critical issue heading into the fall campaign.

The Democratic proposal passed in a sharply polarized 51-48 vote, while the Republican plan was defeated 45-54.

Vice President Joe Biden, the constitutional presiding officer of the Senate, was on hand to cast a tie-breaking vote if necessary.

Strategists on both sides of the aisle acknowledge that neither plan has a chance of passing both the Democratic-controlled Senate and the Republican-controlled House of Representatives. GOP leaders in the House have indicated they have no intention of bringing the Democrats' plan to a vote.

House Speaker John Boehner, R-Ohio, pledged in a written statement after the votes to "stop the tax hike," and insisted Republicans are the only ones addressing the "threat to our economy."

Republican National Committee Chairman Reince Priebus blasted Democrats for backing a "disastrous plan to raise taxes on small businesses and job creators" while putting "their tax-and-spend agenda ahead of creating jobs."

President Barack Obama, however, said, "House Republicans are now the only people left in Washington holding hostage the middle-class tax cuts for 98% of Americans."

The U.S. economy "isn't built from the top down, it's built from a strong and growing middle class, and that's who we should be fighting for," he declared.

Lee: Congress should extend tax cuts

Sen. Blumenthal: Extend tax cuts

Rival Bush tax plans

Wednesday's votes were primarily about political positioning in the heat of the 2012 election season, as well each party's opening bid in what is sure to be a frenzied legislative negotiating session this autumn. The economy is approaching a so-called "fiscal cliff" brought on by the looming expiration of several tax cuts as well as the approach of a series of mandatory spending cuts.

"At the end of the day this (legislative maneuvering) isn't going to solve the problem. It's going to be political posturing all the way up to the November election," said Sen. Bill Nelson, D-Florida.